Testing for cross-subsidisation in the combined heat and power generation sector: a comparison of three tests
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Testing for cross-subsidisation in the combined heat and power generation sector : a comparison of three tests. / Amundsen, Eirik S; Andersen, Per ; Jensen, Frank.
In: Energy Economics, Vol. 33, No. 5, 2011, p. 750–757.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Testing for cross-subsidisation in the combined heat and power generation sector
T2 - a comparison of three tests
AU - Amundsen, Eirik S
AU - Andersen, Per
AU - Jensen, Frank
PY - 2011
Y1 - 2011
N2 - In this paper we examine cross-subsidisation among combined heat and power producers in Denmark.Information on stand-alone costs for heat generation allows us to empirically compare the Faulhaber tests,tests with an upper bound on stand-alone costs (the Palmer tests) and the fully distributed cost test (FDC). All tests indicate a substantial amount of cross-subsidisation from heat generation to power generation. It is shown that the FDC test is closer to that of the Faulhaber tests in its results than the Palmer tests. Thus as the Faulhaber tests are considered in the literature to be the theoretically correct tests, the FDC test is shown to be the best approximation for tests of cross-subsidisation for this specific sector.
AB - In this paper we examine cross-subsidisation among combined heat and power producers in Denmark.Information on stand-alone costs for heat generation allows us to empirically compare the Faulhaber tests,tests with an upper bound on stand-alone costs (the Palmer tests) and the fully distributed cost test (FDC). All tests indicate a substantial amount of cross-subsidisation from heat generation to power generation. It is shown that the FDC test is closer to that of the Faulhaber tests in its results than the Palmer tests. Thus as the Faulhaber tests are considered in the literature to be the theoretically correct tests, the FDC test is shown to be the best approximation for tests of cross-subsidisation for this specific sector.
U2 - 10.1016/j.eneco.2010.12.013
DO - 10.1016/j.eneco.2010.12.013
M3 - Journal article
VL - 33
SP - 750
EP - 757
JO - Energy Economics
JF - Energy Economics
SN - 0140-9883
IS - 5
ER -
ID: 34354921